Mergers and acquisitions (M&A) have long been a strategic tool for growth and expansion in the utility industry. Whether to achieve economies of scale, expand service territories, or diversify energy portfolios, these transactions can significantly reshape a company's operations and market position. However, along with the potential benefits, M&A activities come with complex tax implications that can have a lasting impact on a company's financial health and regulatory compliance.
Read MoreAs a utility company, you rely on robust, reliable software to manage complex tax processes efficiently. For decades, PowerPlan’s PowerTax software has been the only available industry-focused tax fixed asset solution. However, the Lucasys team has heard from many utilities that PowerPlan has communicated an End of Life for its PowerTax software. If your organization has been told that PowerTax is reaching its End of Life, you may now be facing the urgent task of finding a new solution to replace your legacy solution. The discontinuation of any software poses significant challenges, but it also presents an opportunity to upgrade to more advanced, future-proof technology like Lucasys Tax.
Read MoreAmerican Electric Power (AEP), one of the nation’s largest utility power producers and operator of the nation’s largest electric transmission network, has a longstanding reputation as an industry leader in digital transformation and technological innovation. Successful operations have led AEP to sustained growth, expanding the organization into additional states and service territories while accumulating a blend of data, processes, and technologies.
Read MoreIn today's increasingly interconnected world, the threat landscape for US utilities is evolving at an unprecedented pace. As these vital organizations continue to embrace digital technologies to improve efficiency and customer service, they also find themselves in the crosshairs of malicious actors seeking to exploit vulnerabilities. The realm of cybersecurity is fraught with challenges, and understanding the latest threats is essential for safeguarding critical infrastructure.
Read MoreIn late March 2023, President Biden proposed a federal budget for fiscal year 2024 that will increase government spending in new infrastructure, education, healthcare, and climate change initiatives. To fund the investments, the Biden administration has proposed several tax reforms that will have important implications for corporations. Specifically, the proposed increase in the corporate income tax rate from 21% to 28% will have a significant impact on rate-regulated utilities
Read MoreOn October 15, the IRS issued PLR 202141001 for regulated electric utilities. In its ruling, the IRS reiterated earlier assertions that the net deferred tax asset (DTA) related to the cost of removal (COR) is not subject to normalization, but also added clarification that the deferred tax liability (DTL) and DTA from the salvage value is subject to normalization rules.
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